Facebook Parent Meta Is Preparing to Notify Employees of Large-Scale Layoffs This Week

Meta Platforms Inc. is contemplating announcing massive cuts in the coming week, according to people who have been informed this could be the largest cut in the recent flurry of job cuts in tech following the rapid growth of the industry during the epidemic.

The layoffs are likely to impact a lot of employees. Announcing is scheduled to be made by Wednesday, according to people. Meta has reported that it had that it had more than 87,000 employees as of the at the end of September. The company’s officials have already instructed employees to postpone travel that was not necessary starting this week, employees said.

The layoffs planned for this year will be the first major reduction in head count in the company’s long history of. Although the percentage reductions are less than the reductions in Twitter Inc. this past week, which affected roughly half of the employees, the number of Meta employees that are likely to be laid off could be the highest in a major technology company during a time that has witnessed a reduction in tech industry jobs.

A spokesperson for Meta did not respond on Chief Executive Mark Zuckerberg’s recent declaration that the company will “focus our investments on a small number of high priority growth areas.”

“So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,” said the president stated on the company’s third quarter earnings call on October. 26. “In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”

The shares of Meta increased 3.4 percent to $93.85 on Monday’s trading.
The Wall Street Journal reported in September that Meta had plans to cut expenses by 10% over the next months, primarily by reducing the number of employees.

The planned cuts to be announced next week come after a string of staffing reductions that were more specific that saw employees managed out or had their jobs removed.

“Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said. Zuckerberg told employees at an employee-wide meeting held towards the close of June.

Meta as well as many other giants of technology, was to the market for hiring in the wake of the pandemic, as the world and business became more digital. The company added over 27,000 workers in 2020 and 2021 in a single year in addition to 15,344 during the beginning of the year. This is around one-fourth during last quarter.

Meta’s stock has plunged by more than 70% in the past year. The company has warned of the deterioration of macroeconomic conditions however, investors have been concerned about its spending , and threats to its core social media business.

The growth of this business in a variety of markets has been slowed in the face of fierce competition from TikTok and Apple Inc.’s demand that users consent to the tracking of their device has limited the capacity of social media platforms to focus ads.

The company that invests in Altimeter Capital said in an open letter to Mr. Zuckerberg that Meta should reduce staff and cut back on its metaverse goals, pointing out the growing discontent of shareholders.

Meta’s expenses also have increased rapidly, causing its cash flow to decrease by 98% over its most recently reported quarter. A portion of the company’s spending is due to large investment in the extra computational power and artificial intelligence required to create Reels Meta’s TikTok-like short-form video platform for Instagram and to target advertisements with smaller amounts of information.

The majority of Meta’s rising expenses are due to Mr. Zuckerberg’s dedication towards Reality Labs, a division of the company that is responsible for the development of virtual and augmented reality headsets as well as for the development of the Metaverse. It is said that Mr. Zuckerberg has billed the metaverse as an array of interlocking virtual universes where people can be able to play, work, and shop.

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